The 6% revenue decline and 20% Adjusted Property EBITDA drop signal ongoing softness in Macau mass and premium mass segments. Watch for Q3 trends as the REM hotel opening and potential Macau demand recovery could provide a catalyst. The aggressive buyback ($120.6M in ~4 months) and debt refinancing (lowering coupon from 7% to 6.125%) are credit positives but do not offset the operating weakness. Monitor next 10-Q for revenue stabilization or further deterioration.
Price Chart
Executive Summary
Melco Resorts reported Q2 2026 revenue of $1.25B, down ~6% YoY from $1.33B, driven by softer rolling chip and mass market table games. Adjusted Property EBITDA fell 20% to $303.8M from $377.7M, though net income attributable to Melco rose to $22.7M ($0.06/ADS) from $17.2M ($0.04/ADS). The company repurchased ~$120.6M in stock and extended/liquidity-enhanced its revolving credit facility, but the core Macau operations (City of Dreams, Studio City) showed clear weakness, making this a mixed result with a bearish lean on the top-line decline.
Key Facts
- Total operating revenues Q2 2026: $1.25B, down ~6% from $1.33B in Q2 2025.
- Adjusted Property EBITDA Q2 2026: $303.8M, down 20% from $377.7M in Q2 2025.
- Net income attributable to Melco Q2 2026: $22.7M ($0.06/ADS) vs $17.2M ($0.04/ADS) in Q2 2025.
- City of Dreams Adjusted EBITDA fell to $147.8M from $225.6M; Studio City fell to $95.5M from $105.2M.
- City of Dreams Mediterranean Adjusted EBITDA grew 60% YoY to $19.9M.
- Company repurchased ~22.4M ADSs for ~$120.6M from Apr 1 to Aug 12, 2026; remaining authorization ~$589.6M.
- Total debt net: $7.05B; total cash (incl. restricted): $1.04B; available liquidity ~$2.80B.
- Maturity of MN1 2020 Revolving Facilities extended to June 2031; incremental facility of $821M added.
- SCC issued $300M of 6.125% senior secured notes due 2031 to refinance $350M of 7.000% notes due 2027.
- New hotel REM to commence phased opening in Q3 2026.
Financial Impact
Revenue declined ~$76M YoY (-6%); Adjusted Property EBITDA declined ~$74M (-20%); net income improved by ~$5.5M.
Risk Factors
- Further deterioration in Macau rolling chip and mass market volumes.
- High leverage with $7.05B net debt against $1.04B cash; interest expense of $111M per quarter.
- Execution risk on REM hotel opening and ability to capture Macau demand recovery.
- Geopolitical/regulatory risk in Macau, Philippines, Cyprus, and Sri Lanka.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-350178 |
| Document: d152386d6k.htm | 0001193125-26-350178 |
| Document: 0001193125-26-350178-index-headers.html | 0001193125-26-350178 |
| Document: 0001193125-26-350178-index.html | 0001193125-26-350178 |
| Document: 0001193125-26-350178.txt | 0001193125-26-350178 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 5w ago | 6-K | $5.32 $4.67 | ▲ +12.22% | ▲ +12.48% | $4.19 (+21.24%) |
Aug 14, 2026 7w ago | 6-K | $5.60 $4.81 | ▼ −14.11% | ▼ −12.12% | $4.19 (−25.18%) |
Aug 13, 2026 7w ago | Press Release | $5.50 $5.05 | ▼ −8.18% | ▼ −6.43% | $4.19 (−23.82%) |
Aug 7, 2026 8w ago | 6-K | $5.52 $5.21 | ▼ −5.62% | ▼ −5.22% | $4.19 (−24.09%) |
Jun 9, 2026 16w ago | 6-K | $5.62 $5.26 | ▼ −6.41% | ▼ −7.85% | $4.19 (−25.44%) |
May 29, 2026 18w ago | 6-K | $5.56 $5.38 | ▼ −3.24% | ▼ −1.44% | $4.19 (−24.64%) |
Apr 30, 2026 22w ago | 6-K | $5.77 $5.54 | ▼ −3.99% | ▼ −8.95% | $4.19 (−27.38%) |
Apr 30, 2026 22w ago | Press Release | $5.77 $5.54 | ▼ −3.99% | ▼ −8.95% | $4.19 (−27.38%) |
Apr 28, 2026 22w ago | 6-K | $5.55 $5.53 | ▼ −0.36% | ▼ −5.82% | $4.19 (−24.50%) |
Apr 28, 2026 22w ago | Press Release | $5.55 $5.53 | ▼ −0.36% | ▼ −5.82% | $4.19 (−24.50%) |
US Market Status
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